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Cyberattacks on CDK Global Disrupt 15,000 Auto Dealerships; Ransom Demanded

Jun 21, 2024, 01:28 AM

CDK Global, a major software provider for auto dealerships in North America, has been hit by a series of cyberattacks, leading to significant disruptions across the industry. The attacks have forced CDK to shut down most of its systems, impacting approximately 15,000 car dealerships in the U.S. and Canada. This has resulted in dealerships resorting to manual processes for sales and services, causing delays and operational challenges. The cyberattacks, which began on June 19, 2024, included a second attack on Wednesday night, and have continued for several days, with CDK indicating that the disruptions may persist. The attackers, believed to be an Eastern European cybercrime group, have demanded tens of millions of dollars in ransom. CDK is reportedly preparing to make the payment to restore operations. Over 50% of U.S. dealerships, contributing 3-3.5% of GDP, rely on CDK's software, including major brands like General Motors. The incident has highlighted the vulnerabilities in the automotive industry's reliance on centralized software systems.